China has tightened its rules governing the sale of domestic assets by foreign entities in a two-pronged assault on tax avoidance and the overheating property market.
As a result of the changes, which took effect from February 3 but have only now been published, foreign groups owning assets in mainland China through Hong Kong-based companies will face more scrutiny and liability if they wish to sell those assets.
The move, which could yet be applied retrospectively where a tax liability has not been settled, solidifies into regulation what was unofficial since 2009 but also expands it to include ownership of Chinese properties and property rights...
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